Effect of Quality Management on Financial Performance of Manufacturing Firms in Industrial Area, Nairobi County

Abstract

In the modern day times, quality of products and services is a significant element that may offer a firm a competitive edge in the market. For this reason, it is inarguably of paramount important that firms strategically seek to manage quality in order to survive, grow and enhance their profitability. Quality management takes different aspects such as continuous improvements which is the processes of constant evaluation of process to find avenues of bettering the efficiency and quality of products and services. In addition, benchmarking is quality management technique that compares best practices within the firm or outside the firm with the aim of enhancing efficiency, productivity and customer’s satisfaction. This study assessed the effects of quality management practices on financial performance of manufacturing firms in Industrial Area, Nairobi County. The study had a target population of 401 manufacturing firms in Industrial Area, Nairobi County that are members of the Kenya Association of Manufactures. The study adopted a descriptive research design and collected primary data by use of questionnaires. Qualitative analysis was done through descriptive statistics like mean and standard deviation. An analysis of variance was conducted and from the regression model, the results found out that, the regression model is not statistically significant in predicting how Continuous Improvements, Customer Focus, Top management commitment, Benchmarking practices and Supplier partnerships affect financial performance of manufacturing firms in Industrial Area, Nairobi County. This study recommends similar study be conducted focusing on additional variables that affect financial performance of manufacturing firms in Industrial Area, Nairobi County.